Glossary · Doing the deal
LOI(letter of intent)
In short
A short, mostly non-binding agreement on price and terms that starts the formal process. Underwriting time is measured from here.
What it means in a deal
The LOI is your first binding handshake — it defines price, deal structure, exclusivity period, and key conditions before you commit to full due diligence and financing. Most LOIs are non-binding except for the exclusivity (no-shop) clause, which gives you a window to complete underwriting without the seller taking other offers. Experienced buyers include a financing contingency so they can exit cleanly if the SBA underwriting doesn't support the deal.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-16 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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